Mar 19, 2018 Düsseldorf
Slow start in the first quarter 2018 due to delivery difficulties in the consumer goods businesses in North America – Full-year outlook 2018 confirmed for the group
- Weaker development of consumer goods businesses in the first quarter
- Causes identified and normalization expected in the second quarter
- Adhesive Technologies with strong start into the year
- Full year outlook 2018 on group level confirmed
In the first quarter 2018, delivery difficulties in North America adversely affected Henkel's consumer goods businesses. The problems in the supply chain are due to a change in the transportation and logistics systems used by Henkel’s consumer goods businesses in North America.
“The causes of our delivery difficulties in the North American consumer goods businesses have been identified and are currently being solved. We expect to return to usual service levels in the course of the second quarter. Our Adhesive Technologies business as well as our Hair Professional business are not affected and show a very good development,” said Henkel CEO Hans Van Bylen.
“We expect our business performance in the first quarter to be affected by these delivery difficulties. We are not satisfied with this development and we are committed to continue our profitable growth. On group level, we confirm our outlook for the full fiscal year 2018.”
Subdued business development in the first quarter
Based on current forecasts, Henkel expects that the Laundry & Home Care and Beauty Care business units will close the first quarter with negative organic sales growth due to delivery difficulties in North America. In contrast, the Adhesive Technologies business unit, which generates around half of Group sales, continues to show strong development. Overall, organic sales growth for the Group in the first quarter of 2018 is expected to be slightly positive.
Full year outlook for fiscal 2018 confirmed
Despite a slow start to the year, Henkel confirms its Group outlook for full fiscal 2018. Organic growth should still be in the range of 2 to 4 percent, while Henkel expects for the Beauty Care business unit positive organic sales growth below this range. In respect of adjusted return on sales (EBIT), Henkel expects an increase to more than 17.5 percent. Adjusted earnings per preferred share should increase by between 5 and 8 percent.
Henkel will publish first quarter results on May 9, 2018.
This document contains forward-looking statements which are based on the current estimates and assumptions made by the corporate management of Henkel AG & Co. KGaA. Forward-looking statements are characterized by the use of words such as expect, intend, plan, predict, assume, believe, estimate, anticipate, forecast and similar formulations. Such statements are not to be understood as in any way guaranteeing that those expectations will turn out to be accurate. Future performance and the results actually achieved by Henkel AG & Co. KGaA and its affiliated companies depend on a number of risks and uncertainties and may therefore differ materially from the forward-looking statements. Many of these factors are outside Henkel’s control and cannot be accurately estimated in advance, such as the future economic environment and the actions of competitors and others involved in the marketplace. Henkel neither plans nor undertakes to update forward-looking statements.